ManpowerGroup 2004 Annual Report Download - page 83

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MANPOWER INC. 2004 Annual Report81
Projected salary levels utilized in the determination of the projected benefit obligation for the pension plans are based
upon historical experience. The unrecognized transitional assets are being amortized over the estimated remaining
service lives of the employees.
We generally use an external investment manager to assist us in establishing our investment strategies and policies.
Our long-term objective is to minimize plan expenses and contributions by outperforming plan liabilities. We have
historically used a balanced portfolio strategy based primarily on a target allocation of equity securities and fixed-income
instruments, which vary by location. These target allocations, which are similar to the 2004 allocations, are determined
based on the favorable risk tolerance characteristics of the plan and, at times, may be adjusted within a specified range
to advance our overall objective.
The weighted-average asset allocations of our plans as of December 31 are as follows:
2004 2003
Asset Category
Equity securities 40.3% 42.4%
Fixed-income securities 43.2% 40.3%
Cash and other 16.5% 17.3%
Plan assets are primarily comprised of domestic and foreign equity securities, professionally-managed equity and bond
funds, government and agency securities, and guaranteed insurance contracts. None of our plan assets include any of
our debt or equity securities.
Retiree Health Care Plan
We provide medical and dental benefits to certain eligible retired employees in the United States. Due to the nature of
the plan, there are no plan assets. The reconciliation of the changes in the plan’s benefit obligation and the statement
of the funded status of the plan are as follows:
Year Ended December 31 2004 2003
Benefit obligation, beginning of year $ 21.6 $ 20.6
Service cost 0.4 0.4
Interest cost 1.3 1.3
Actuarial loss 1.3 0.3
Benefits paid (1.1) (1.0)
Benefit obligation, end of year 23.5 21.6
Unrecognized net gain 5.0 6.8
Accrued liability recognized $ 28.5 $ 28.4
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
in millions, except share and per share data